Proton's Go-It-Alone Strategy
May Be Driving Investors Away

By

Elffie Chew

Updated Dec. 11, 2007 12:01 a.m. ET

KUALA LUMPUR, Malaysia -- National auto maker Proton Holdings took a bold gamble last month by halting tie-up talks with Volkswagen and General Motors, saying it could return to profitability on its own by selling more cars -- especially cheaper ones -- overseas.

But investors aren't convinced the go-it-alone strategy makes sense. Analysts say Proton, which once dominated the Malaysian market, is ill-equipped to battle fierce...